ERISA requires that plan officials who manage, oversee, recommend, or handle funds or other property of an employee benefit plan must be covered by a personal fidelity bond (according to the U.S. Department of Labor). If a plan official commits fraudulent or dishonest acts, his bond ensures that the pension or health fund can recover some of its losses up to the face value of the bond. The bond only pays if the fraudulent administrator is financially unable to meet his obligations. An ERISA bond can be purchased from most major insurance companies.
ERISA Bond
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ERISA Bond
FAQ'S
What is the difference between the ERISA Bond and a regular bond coverage?
Most Standard carriers can write as much as $1M – $25M primary limits. Higher limits are available on an excess basis and may require more than one carrier.
Is an ERISA Bond comparable to fiduciary liability?
No the fiduciary covers your decisions and the ERISA Bond protect you in the event of theft.
We only have a $120,000 401K for our six employees, do we really need this coverage?
Under Federal Mandate – Employee Retirement Income Security Act – Companies that collect retirement funds must insure at a minimum 10% of the funds assets.
Click on the coverage to learn more.
Carriers
